Examlex
Which of the following statements is most accurate?
Preferred Stock
A type of stock that typically guarantees dividends and has priority over common stock in asset liquidation.
Dividends
Payments made by a corporation to its shareholder members. It is the share of profits and retained earnings that the company distributes to its shareholders.
Par Value
The nominal or face value of a bond, share of stock, or coupon as indicated on a certificate.
Dividend Yield
A financial ratio that indicates how much a company pays out in dividends each year relative to its stock price, often used by investors to assess the income-generating ability of a stock.
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